Chapter 1 Earning Money
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WIK=I
Your score :
/25
False A.M. is in the afternoon.
False All employees are paid hourly.
False Minimum hourly rates are set by the federal government.
False Each state sets its minimum hourly rate.
False A normal work week is 35 hours per week.
False To find estimated annual wages for a worker who is paid hourly, multiply
the hourly wage by 200.
False Pay periods can vary from person to person.
False Military time divides the day into 24 hour periods.
False Annual wages is the money earned by an employee in a year.
False In military time, 7:00 P.M. is 1800 hours.
False To convert a percent to a decimal move the decimal to places to the
right.
False 30 minutes is the same as ½ hour.
False Medicare, Social Security, federal & state taxes are always added to your
gross pay.
False If you get paid quarterly, you get 25 paychecks in a year.
False The number of items produced is used to calculate piecework.
False Your Social Security tax rate is 6.2%, your employer pays 6.2%.
False Your Medicare tax rate is 1.45%, your employer also pays 1.45%.
False When calculating time worked, always subtract later time from earlier
time.
False Service industry workers earn tips.
False People in sales earn piecework rates.
False Time and a half for a minimum wage worker in CT is $ 12.50
False Net pay is all the money you earn before deductions.
False Gross pay is the money you earn after deductions.
False Deductions are added to your gross pay.
False To calculate the percentage paid in deductions, divide the gross pay
amount by the amount of your deductions.
Matching
Your score :
/10
_____ Hourly rate
52 pay periods per year
_____ gratitude
your Medicare tax rate
_____ YTD
24 pay periods per year
_____ Rate of commission
your Social Security tax rate
_____ piece rate
a required amount
_____ quota
year to date
_____ 1.45% tax rate
amount earned for each hour worked
_____ 6.2% tax rate
amount paid for each item that passes inspection
_____ weekly
another word for tip
_____ semimonthly
% used with sales to calculate your earnings
Word problems:
Your score :
Hourly rate $8.50
Show Your Work
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/15
Calculate your pay if you worked 20 hours:________________
Calculate your pay if you worked 40 hours:________________
Calculate your double time rate:_________ Calculate your time and a half rate:_________
Calculate your pay if you worked 52 hours (10 hours on Saturday & 2 hours on Sunday):
________________ ___________________ _____________________ ________________
Regular wages
Saturday wages
Sunday wages
6. Estimate your annual wages: ________________________
Total Wages
Time Worked
Arrival 7:00AM
Lunch 11:30-12:15
-____________________
Arrival 8:15AM
- ___________________
Lunch 12:05-12:45
-____________________
Departure 4:30
Total Hours Worked
+ ___________________
Departure 5:15
- ___________________
Total Hours Worked
+ ___________________
Your score :
/16
Jay works 3 days a week (6:00 AM to 6:00 PM) at Bradley International Airport as a baggage
handler. He earns $9.15 an hour. He averages $105 in tips per day, calculate his weekly
earnings.
Hours worked__________ Earnings___________ Tips_____________ Total ___________
Round the following to the nearest :
cent
$9.993
$0.898
$55.076
$159.996
dollar
Liz works at Timex putting watch bands on watches. She earns $.58 for each watch that
passes inspection. Find her wages for the last 2 weeks using the information provided.
Week of
10/15-10/19
Mon
189
Tues
192
Wed
187
Thurs
201
Fri
203
10/22-10/26
201
195
203
202
197
Total
Wages
Your score : /5
Find the commission and total salary for Mr. Smith using the information provided.
base salary
$250.00
sales
$36,875.00
Rate of
commission
Commission
Total
(salary +commission)
4.5%
Find the commission and total salary for Ms. Sullivan using the information provided.
base salary
$200.00
sales
$42,055.00
Rate of
commission
Commission
Total
(salary +commission)
3%
Sally just started working as an agent for Century 21. She sold her first house for $249,900.
The contract she signed with the sellers, stipulated a 5% commission to be split equally
between the broker representing the buyer and the broker representing the seller. Calculate
the total commission:_________________
Your score : /28
Your net pay is also known as your __________________________________________; it is always
____________ than your gross pay
Pete’s gross pay is $795/week. He pays $243.52 in deductions. What is his net pay?________________
What percentage of his income is deducted?_______________________
Tara’s deductions add up to $201.67 a week. If her net pay is $625 a week, what is her gross pay?
___________________
What percentage of her income is deducted?_______________________
Ruth earns $8.25/hour. She works 40 hours/week. $78.27 is deducted each week. What’s her net pay?
___________________
What percentage of her income is deducted?_______________________
Andre’s gross pay is $950. He pays $171 in taxes and health insurance. What is his net pay ? __________
What percentage of his income is deducted? _______________________
Barbara’s deductions total $38.25. Her gross pay is $425. What is her net pay ? __________ What
percentage of her income is deducted? ______________________
Calculate the net pay & deductions for the following:
Gross pay
Social
Security tax
(4.2%)
Medicare tax
(1.45%)
State tax
(2%)
Federal tax
(22%)
Medical/
Dental
(18%)
Net Pay
Joy
$1,376.29
Jack
$1,704.05
Joy’s total deductions : ______________What percentage of Joy’s income is deducted? _____________
Jack’s total deductions : ______________What percentage of Jackson’s income is deducted? _________